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Today’s Summary
Friday, June 17th, 2022
Indices: Nasdaq 100 +1.24% | Russell 2000 +0.96% | S&P 500 +0.22% | Dow -0.13%
Sectors: 5 of the 11 Sectors closed higher. Communications led, gaining +1.43%. Energy lagged, dropping -5.47%.
Commodities: Crude Oil futures dropped -8.16% to $107.99 per barrel. Gold futures fell -0.50% to $1,841 per ounce.
Currencies: The US Dollar Index rose +0.82%.
Crypto: Bitcoin inched higher by +0.54% to $20,493. Ethereum rose +1.92% to $1,087.
Interest Rates: The US 10-year Treasury yield rose to 3.231%.
**Reminder – The US Stock Market & Bond Market will both be closed on Monday, June 20th, 2022 in observance of Juneteenth**
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Bear markets typically leave no sector unscathed. Is energy staging a descent toward 200dma? pic.twitter.com/oqyQ2zHs3o
— Mark Ungewitter (@mark_ungewitter) June 17, 2022
Today’s Chart of the Day was shared by Mark Ungewitter (@mark_ungewitter). The Energy Sector has been the only place to hide this year, however, this week was an entirely different story. It tumbled more than 17%, marking its worst week since March 2020. This week’s drop puts $XLE back below the former highs around $79. In other words, the market’s strongest sector is dealing with a failed breakout. As we know, failed breakouts often lead to sharp moves lower. It remains the only positive sector this year, up a whopping 35%, however, it’s already corrected about 20% over the past couple of weeks. Have the Bears found the Bull’s last and only hiding spot?
Quote of the Day
“Never trust a thought that occurs to you indoors.”
– Friedrich Nietzsche
Top Links
Nowhere to Hide – The Chart Report
In this week’s video, Steve Strazza, Ian Culley and I discuss the continued weakness across the markets.
Higher Rates Break Homebuilder Stocks – LPL Finacial Research
Scott Brown looks at the breakdown in Homebuilding stocks.
It’s Historically Likely Fintech Companies Have Reached a Bottom, Says Strategas’ Verrone – CNBC
Chris Verrone shares his outlook for stocks.
Three Types of Investors – The Irrelevant Investor
Michael Batnick weighs in on this week’s sell-off.
Stock Market Analysis June 17, 2022 – AlphaTrends
Brian Shannon recaps this week’s price action and lays out some key levels to watch in the near term.
Top Tweets
The S&P 500 is about to down down 10 out of the past 11 weeks.
That has only happened once in history and it was in 1970.
— Ryan Detrick, CMT (@RyanDetrick) June 17, 2022
Not an awful close for Friday but the damage on Weekly charts is eye catching. Again, I’m always open-minded to a reversal of any shape and size, but based on the information we have at hand, it continues to be a very bleak picture for equities and this week only made it worse.
— Ian McMillan, CMT (@the_chart_life) June 17, 2022
Market Prone to Late June Weakness –
June is not a great month for the market in general. It’s even weaker in midterm years. But the week after June Triple Witching is horrendous. Down Triple Witching Weeks also tend to trigger more weakness the week after. pic.twitter.com/vc8qLg4Vcs— StockTrader'sAlmanac (@AlmanacTrader) June 17, 2022
Weekly Chart of the Nasdaq Composite $COMPQ ended the week @ the 200 week MA & with only 12% of its components in a long term trend uptrend. Chart goes 20 years back for some context of current levels & situation. pic.twitter.com/LzaCaMiZSb
— Victor Riesco, CMT (@Global_Trader) June 17, 2022
It looks like Industrials and Transports will be joining the round-tripper party.
$XLI $IYT pic.twitter.com/VQpVAhdbb1— Matthew Timpane, CMT (@mtimpane) June 17, 2022
Energy stocks coming down to a level of interest which might find enough buyers to cause support to form. A level of interest is a place to study for EVIDENCE buyers are getting serious, NOT an automatic buy area
Support always known AFTER the fact$XLE ⚓️VWAP pic.twitter.com/97vGmonSZl
— Brian Shannon, CMT (@alphatrends) June 17, 2022
What an absolutely gorgeous pull back in oil today! IYKYK ?$WTI $CL_F pic.twitter.com/JmKWiyxf12
— Ayesha Tariq, CFA (@ayeshatariq) June 17, 2022
Worst week for wholesale gas prices (-12%) since March 2020.
@CNBC #OOTT pic.twitter.com/luhNsUX9At
— Carl Quintanilla (@carlquintanilla) June 17, 2022
Copper nearing $4.00. This seems like an important test. Think I’ll keep a close eye on this one (The theory: a breakdown in copper may portend recession). #sentimentrader pic.twitter.com/bctOVdljrY
— Jay Kaeppel (@jaykaeppel) June 17, 2022
The commodity with a PhD in economics is coming to rescue the Fed. pic.twitter.com/LIfo0e7gDn
— Dow (@mark_dow) June 17, 2022
Here you can see copper breaking down from a topping formation to new 52-weeks lows relative to gold. pic.twitter.com/2BW6ZmN6uR
— Alfonso Depablos (@AlfCharts) June 17, 2022
it's not an inflation hedge, #Bitcoin is just another nasdaq stock pic.twitter.com/WPelvOmNpn
— J.C. Parets (@allstarcharts) June 17, 2022
The FDIC historically closed banks and reorganized them over weekends to minimize runs and provide a clean slate Monday morning. #BTC probing cycle lows as we head into the elongated weekend. #bitcoins pic.twitter.com/nZzY2U1TGC
— RenMac: Renaissance Macro Research (@RenMacLLC) June 17, 2022
3-day weekends… pic.twitter.com/Gfnm7Fzwed
— Stocktwits (@Stocktwits) June 17, 2022
You’re all caught up now. Thanks for reading!